BUSINESS MATH REVIEW CHAPTERS 1-
5 & 8 EXAM QUESTIONS WITH
COMPLETE ANSWERS
annual gross pay - ANSWER- what you earn before exemptions are taken out.
annual tax withheld - ANSWER-amount of tax withheld a year.
tax rate - ANSWER-expressed as a percent and used to determine how much tax you
pay.
graduated income tax - ANSWER-when there is a different tax rate for each of several
levels of income.
social security - ANSWER-a law that provides retirement income and pay a tax from our
income towards it.
medicare taxes - ANSWER-federal health insurance program that we pay tax on.
group insurance - ANSWER-when a group buys an insurance plan, the cost is lower
than an individual plan.
net pay - ANSWER-amount of your pay less all your deductions. the amount that you
actually receive.
deposit - ANSWER-the amount of money you put into a bank account.
checks - ANSWER-tells a bank to deduct money from your checking account to make a
payment.
overdraw - ANSWER-when you write a check for more than you have in your account.
check register - ANSWER-used to keep a record of all your transactions.
balance - ANSWER-the amount of money in your account.
statement - ANSWER-a record of your account sent by the bank for a period of time.
cancelled checks - ANSWER-a check the bank has paid by deducting money from your
account.
service charge - ANSWER-a charge by the bank for handling the account.
5 & 8 EXAM QUESTIONS WITH
COMPLETE ANSWERS
annual gross pay - ANSWER- what you earn before exemptions are taken out.
annual tax withheld - ANSWER-amount of tax withheld a year.
tax rate - ANSWER-expressed as a percent and used to determine how much tax you
pay.
graduated income tax - ANSWER-when there is a different tax rate for each of several
levels of income.
social security - ANSWER-a law that provides retirement income and pay a tax from our
income towards it.
medicare taxes - ANSWER-federal health insurance program that we pay tax on.
group insurance - ANSWER-when a group buys an insurance plan, the cost is lower
than an individual plan.
net pay - ANSWER-amount of your pay less all your deductions. the amount that you
actually receive.
deposit - ANSWER-the amount of money you put into a bank account.
checks - ANSWER-tells a bank to deduct money from your checking account to make a
payment.
overdraw - ANSWER-when you write a check for more than you have in your account.
check register - ANSWER-used to keep a record of all your transactions.
balance - ANSWER-the amount of money in your account.
statement - ANSWER-a record of your account sent by the bank for a period of time.
cancelled checks - ANSWER-a check the bank has paid by deducting money from your
account.
service charge - ANSWER-a charge by the bank for handling the account.
